Birla Sun Life Asset Management Company launches Capital Protection Oriented Fund Series 7
15th September, 2011
Mumbai: Birla Sun Life Asset Management Company Ltd (BSLAMC) has launched Capital Protection Oriented Fund Series 7, an alternative to the traditional investment options like traditional deposits. This is a 36-month close-ended scheme, which offers protection to the invested money by investing into high quality bonds (debt) till the end of tenure and exploring capital growth prospect by investing a part of the capital for equity market exposure.
Mr. A Balasubramanian, CEO, BSLAMC, said, "The company intends to provide a platform, which aims to help investors protect their capital and at the same time allows them an opportunity to invest a small portion of their capital for equity market exposure."
This product is designed to keep the investors' money safe. At the same time it allows the investor an opportunity to take a small exposure to equity market through investing in premium of exchange traded index options. The returns of such funds are also more tax - efficient as compared to traditional deposit.
BSL CPOF Series 7 has been rated CARE AAAmfs (so) by CARE. The fund offers growth option only with minimum application amount of Rs.5,000 and multiples of Rs.10 thereafter during the new fund offer period. It shall be open for subscription from 15th September till 29th September 2011.
The fund is benchmarked against CRISIL Balanced Fund Index and shall be managed by Mr. Satyabrata Mohanty and Mr. Ajay Garg.
About Birla Sun Life Asset Management Company
Established in 1994, Birla Sun Life Asset Management Company Limited (BSLAMC) is a joint venture between Aditya Birla Group, a well known Indian conglomerate and Sun Life Financial Inc, a leading international financial services organisation from Canada.
BSLAMC is the 5th largest asset management company in India with domestic average assets under management of Rs.67,475 (US$14.2 billion) for the quarter, April - June 2011. An impressive mix of reach through 103 branches, wide range of product offerings across equity, debt, balanced as well as structured asset classes and strong investment performance has helped the company garner over 2.2 million investor scheme accounts. Known for its consistent investment performance across asset classes, BSLAMC has received recognitions from various institutes of international repute like Lipper, Outlook Money and The Asset Magazine - Hong Kong.
About Aditya Birla Financial Services Group (ABFSG)
Aditya Birla Financial Services Group (ABFSG) has built a significant presence across its verticals, viz., life insurance, asset management, NBFC, private equity, broking, wealth management and distribution and general insurance advisory services.
The seven companies representing Aditya Birla Financial Services Group are Birla Sun Life Insurance Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Finance Ltd., Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., Aditya Birla Money Mart Ltd and Aditya Birla Insurance Brokers Ltd. ABFSG is committed to being a leader and role model in a broad based and integrated financial services business. Its seven lines of businesses, with about 5.5 million customers manages assets worth Rs.92,259 crores (US$20.5 billion) and prides itself for having a talent pool of about 15,000 committed employees. ABFSG has its wings spread across more than 500 cities in India through over 1,700 points of presence and about 200,000 channel partners. This allows ABFSG to offer its customers virtually anything under financial services except a savings or current account. With over Rs.6,296 crores (FY2010-11) in revenues, ABFSG is a significant non-bank player.
ABFSG is a part of Aditya Birla Nuvo Ltd. (ABNL), a US$4 billion conglomerate having leadership position across its manufacturing as well as services sector businesses. ABNL is a part of the Aditya Birla Group, a US$35 billion Indian business house operating in 33 countries across the globe.
About Sun Life Financial Inc
Sun Life Financial is a leading international financial services organisation providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers.
Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2011, the Sun Life Financial group of companies had total assets under management of Canadian $469 billion.
For more information please visit www.sunlife.com.
The Scheme offered is "oriented towards protection of capital" and "not with guaranteed returns". The orientation towards protection of the capital originates from the portfolio structure of the scheme and not from any bank guarantee, insurance cover, etc.
The scheme intends to provide equity exposure through investments in Index Options.
The risks associated with the use of derivatives (Index Options) are different from the risks associated with investing directly in securities and other traditional investments. Please refer to the Scheme Information Document (SID) for detailed Scheme specific risk factors before investing.
The rating of 'CARE AAAmfs (SO)' is pronounced as 'CARE Triple A mfs (Structured Obligation)'. The assigned rating is valid only for Birla Sun Life Capital Protection Oriented Fund - Series 7. Schemes with this rating are considered to have the highest degree of safety regarding timely receipt of payments from the investments they have made. CARE's capital protection oriented scheme ratings are not recommendations to buy, sell or hold a fund or scheme. These ratings do not comment on the volatility of net asset value (NAV) of the scheme or the level of NAV compared to the face value during the tenure of the scheme any time before maturity. The ratings are valid only for the maturity of the scheme.
Statutory Details: Constitution: Birla Sun Life Mutual Fund (BSLMF) has been set up as a Trust under the Indian Trusts Act, 1882. Sponsors: Aditya Birla Financial Services Pvt. Ltd. and Sun Life (India) AMC Investments Inc. [liability restricted to seed corpus of Rs.1 Lakh] Trustee: Birla Sun Life Trustee Company Pvt. Ltd. Investment Manager: Birla Sun Life Asset Management Company Ltd. Scheme Classification & Objective: Birla Sun Life Capital Protection Oriented Fund - Series 7: (A Close ended Capital Protection Oriented Scheme) which seeks to provide capital appreciation linked to equity market with downside protection at the end of tenure & expects to achieve down side protection by investing in debt securities with tenure comparable with the tenure of the Plan, subject to the credit risk. Fund expects to achieve the market-linked appreciation (upside) by investing in premium of exchange traded options & proposes to restrict its derivative exposure only to the extent of buying of call options. Hence the maximum loss could be equivalent to the premium paid, not any more, Moreover, the premium paid will be equal or lower to the coupon receivable from fixed income securities after providing for fund expenses. Tenure of scheme: 36 months from and including the date of allotment. Asset Allocation: Debt securities and Money Market Instruments: 80%-100%, Options Premium: 0%-20%. (The Option Premium shall be for the purpose of exposure to derivative instruments which shall be restricted to long call options. The Options Premium offers the actual equity market exposure.) Asset Allocation shall be subject to such conditions/restrictions more specifically contained in SID. Issue Price: Rs.10/- per unit during the NFO period. Minimum Application Amt: Rs.5,000/- and in multiples of Rs.10/- thereafter. Load Structure: Entry Load: Nil, Exit Load: Nil. Liquidity: As per the SEBI guidelines, no redemption/repurchase of units shall be allowed prior to the maturity of the scheme. Investors wishing to exit may do so through stock exchange mode. i.e. investors can buy / sell units on a continuous basis on the stock exchange(s). Risk Factors: Mutual Funds and securities investments are subject to market risks and there can be no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme may go up or down depending on the various factors and forces affecting capital markets and money markets. Past performance of the Sponsors / Investment Manager / Mutual Fund does not indicate the future performance of the Scheme and may not necessarily provide a basis of comparison with other investments. Birla Sun Life Capital Protection Oriented Fund - Series 7 is only the name of the Scheme and does not in any manner, indicate either the quality of the Scheme or its future prospects or returns. Unitholders in the scheme are not being offered any guaranteed/assured returns. Scheme Specific Risk Factors: The ability of the portfolio to meet capital protection on maturity to the investors can be impacted by interest rate movements in the market, credit defaults by bonds, expenses and reinvestment risk. Listing of units of the scheme on stock exchange(s) does not necessarily guarantee liquidity and there can be no assurance that an active secondary market for the units will develop or be maintained. Consequently, the Scheme may, depending on the market forces, even quote below its face value / NAV. Scheme is required to have a minimum number of 20 investors and no single investor should account for more than 25% of its corpus immediately after the close of the NFO i.e. at the time of allotment. In case of non-fulfillment of any one of the aforesaid criteria, scheme shall be wound up by following the guidelines prescribed by SEBI. Investments in the scheme shall be subject to various other risk factors including but not limited to risks associated with investment in Derivatives, investment in Debt Securities such as Price-Risk or Interest Rate Risk, Credit Risk, Liquidity or Marketability Risk, Reinvestment Risk etc. For further Scheme Specific Risk Factors & other details Investors should read the Statement of Additional Information/ Scheme Information Document/Key Information Memorandum available at Investor Service Centres and with Distributors carefully before investing. Please refer www.birlasunlife.com for further details.